Stocks opened higher Tuesday after strong earnings reports from Johnson & Johnson, Zions Bancorporation and other companies. Housing starts increased more than expected in March.

Zions rose 6 percent, the most of any company in the Standard & Poor's 500 index. The Utah bank reported a first-quarter profit after posting a loss a year ago. It also said customers were getting better at paying back loans, allowing the bank to set aside less money to cover defaults.

The Dow Jones industrial average rose 41 points, or 0.3 percent, to 12,242. The Standard & Poor's 500 rose 4 points, or 0.3 percent, to 1,309. The Nasdaq composite rose 5, or 0.2 percent, to 2,740.

Health care heavyweight Johnson & Johnson rose 3 percent. The company beat Wall Street's earnings expectations and raised its full-year earnings forecast.

The Commerce Department reported that builders broke ground in March on the highest number of new homes in six months. Home construction rose 7.2 percent from February, more than analysts had expected.

Trucking company Paccar Inc. rose 5 percent after its income and revenues beat analysts' expectations.

The Supreme Court on Monday heard arguments from Microsoft Corp. asking it to overturn a $290 million patent infringement judgment against the world's largest software maker, a ruling that could have a profound effect on how corporations protect and profit from their future inventions.

An eight-justice court on Monday heard arguments from the Redmond, Washington-based Microsoft, which wants the multimillion dollar judgment against it erased because it claims a judge used the wrong standard.

Business groups are closely watching this case. The U.S. government made more than $64 billion off of international licensing and royalties from patents in 2009, with an expected growth rate of 15 percent a year. A ruling for Microsoft could make companies less likely to invest in new inventions, but a ruling for i4i, the company which brought the lawsuit against Microsoft, could make it harder for large corporations to fight off such challenges.

Goldman Sachs' first-quarter income fell 72 percent after the bank paid $1.64 billion in dividends to redeem preferred shares it issued to billionaire investor Warren Buffett during the financial crisis.

The New York investment bank said Tuesday that it earned $908 million, or $1.56 per share, compared with $3.3 billion, or $5.59 a share in the first quarter of last year.

Excluding the dividend payment, earnings per common share were $4.38, beating the $3.95 per share forecast of analysts surveyed by FactSet.

Revenue fell 7 percent to $11.9 billion on weakness in the bank's core businesses of trading stocks and bonds and advising clients. Goldman's stock fell 0.9 percent to $152.38 in late morning trading.

The Federal Reserve gave Goldman Sachs Group Inc. permission to repay Berkshire Hathaway last month. While the Fed's decision wasn't a surprise given Goldman's ever-widening profits since the financial crisis, it reflected how far Goldman and other major banks have progressed from the darkest days of September 2008.

At that time, Buffett, who is CEO of Berkshire, helped shore up confidence in Goldman Sachs by making a $5 billion investment in the company. Berkshire received preferred shares that paid a 10 percent annual dividend. Goldman's second-quarter earnings will likely be affected by the redemption, which occurred on April 18.